In a freshly published personal account, titled Ithaki, the former prime minister Alexis Tsipras spares no criticism as he examines that turbulent era of Greece's debt drama.
An Unconventional Choice
As per the ex-PM's recollections, Tsipras appointed that maverick economist Yanis Varoufakis as the finance minister largely due to the latter's global profile and Varoufakis's “extremely attractive” abilities when it came to speaker.
“He was, truthfully, more like a personality rather than an economist,” wrote Tsipras.
Conflicting Priorities
Tsipras suggests how his finance chief had a personal motives which included promoting his publications as well as testing out his own economic models on Greece rather than genuinely advocating its economic stability.
He explained that the negotiations to avoid bankruptcy were “not just a way of achieving a better deal for Greece. They became a test, an historic chance to prove the validity of his ideas.”
Critical Negotiations
Amid rollercoaster discussions, the country came perilously close to leaving the eurozone.
On the line was both Greece's future but also the punishing austerity policies demanded in return for rescue loans by international creditors.
Failed Alternatives
Efforts to find funds from other sources, including an urgent appeal to the Kremlin to purchase Greek bonds, were rejected.
Helping Greece would be equivalent to tossing cash into the garbage, Putin is reputed to have told Tsipras in Moscow.
Referendum and Reversal
That summer, the punitive bailout terms were subjected to a public vote, an action that threw the EU into a further existential crisis.
Although the vote was won decisively by those who opposed austerity, the prime minister had little option to reject its outcome and negotiate a bailout package from creditors that proved to be tougher.
Breaking Point
Tsipras claimed that he started questioning Varoufakis relatively soon.
“Varoufakis was the public image of negotiation, the figure who attracted publicity, who appeared on the front pages of publications globally … it seemed he relished his new role.”
When Varoufakis proposed a backup strategy that included creating a secondary currency and issuing coupons to retirees, the leader knew it was the end and asked him: “Is this for real?”
Lasting Criticism
Within the book, Tsipras asserts how his former ally demonstrated himself “unsuitable for an agreement demanding complex and sensitive management.”
He further claimed that his aggressive style left him increasingly isolated with colleagues, put Greece at risk, while assisted hawks that were advocating Grexit.
This retelling of events has been met with fury and stunned disbelief in some quarters, whereas Varoufakis has so far kept a conspicuous quiet on the matter.
